The City of Long Beach, CA, Did Not Fully Comply With Federal Regulations When Administering Its NSP2 Grant
We conducted an audit of the City of Long Beach because it was awarded more than $22.2 million in Recovery and Reinvestment Act of 2009 Neighborhood Stabilization Program 2 (NSP2) funds on February 11, 2010 as the lead agency in a consortium with Habitat for Humanity of Greater Los Angeles (Habitat), making it one of the largest NSP2 fund recipients in the Los Angeles area. Our objective was to determine whether the City of Long Beach…
September 21, 2012
Report
#2012-LA-1012
Corrective Action Verification, City of Newburgh, NY, Section 108 Loan Guarantee program, Audit Report 2009-NY-1001
We completed a corrective action verification of the recommendations made to the U.S. Department of Housing and Urban Development’s (HUD) Office of Community Planning and Development (CPD) pertaining to our review of The City of Newburgh, NY’s Section 108 Loan Guarantee program, Audit Report 2009-NY-1001, which was issued November 7, 2008. The purpose of the corrective action verification was to determine whether the audit recommendations…
September 21, 2012
Memorandum
#2012-NY-0802
The Wichita, KS, Housing Authority Did Not Always Properly Administer Its Housing Choice Voucher Program
The U. S. Department of Housing and Urban Development (HUD), Office of Inspector General audited the Wichita, KS, Housing Authority’s Housing Choice Voucher program. We selected the Authority for review because it received more than $12 million in Section 8 funding in both 2011 and 2010. Also, it is one of the largest housing authorities in Kansas and had not been reviewed by HUD OIG. Our audit objective was to determine whether the Authority…
September 19, 2012
Report
#2012-KC-1005
FHA Paid Claims for Approximately 11,693 Preforeclosure Sales that Did Not Meet FHA Requirements
The U.S. Department of Housing and Urban Development’s (HUD), Office of Inspector General reviewed the Federal Housing Administration (FHA) Preforeclosure Sale Program. Our objective was to determine whether FHA paid claims for only preforeclosure sales that met the criteria for participation in the program.
We found that 61 of 80 statistically selected claims from September 1, 2010, through August 31, 2011 did not meet the criteria for…
September 18, 2012
Report
#2012-KC-0004
HUD Did Not Always Enforce REO M&M III Program Requirements
The U.S. Department of Housing and Urban Development (HUD), Office of Inspector General (OIG) audited HUD’s oversight of its real estate-owned (REO) Management and Marketing (M&M) III program in response to a HUD OIG auditability survey on REO contract administration. Our audit objective was to determine whether HUD’s policies and procedures provided for efficient and effective oversight of asset managers and field service managers under…
September 18, 2012
Report
#2012-LA-0003
Bankers Mortgage Group, Woodland Hills, CA, FHA Loan Originations
We audited loans originated by Bankers Mortgage Group, Woodland Hills, CA, in response to a referral from the Office of Inspector General’s (OIG) Office of Investigation alleging that Bankers Mortgage Group originated loans with false documentation. Our objective was
to determine whether the lender originated FHA-insured loans using sufficient, reliable, and valid documentation.
Bankers Mortgage Group did not originate loans using sufficient…
September 13, 2012
Report
#2012-LA-1011
Innotion Enterprirses, Inc., Las Vegas, NV, Single Family REO Contract Administration
We audited the U.S. Department of Housing and Urban Development (HUD) real estate-owned (REO) Management and Marketing (M&M) III program at Innotion Enterprises, Inc., to determine whether Innotion performed property preservation and protection services according to contract requirements. The review was part of our efforts to improve the integrity of the single-family insurance programs. We selected Innotion’s Las Vegas, NV, branch based…
September 12, 2012
Report
#2012-LA-1010
The Buffalo, NY, Municipal Housing Authority Did Not Always Administer Its Recovery Act Capital Fund Program in Accordance With HUD Requirements
We audited the Buffalo Municipal Housing Authority’s Public Housing Capital Fund Stimulus (Formula) program funded under the Recovery and Reinvestment Act of 2009 based on an Office of Inspector General risk analysis and the amount of funding the Authority received. The objectives of the audit were to determine whether Authority officials (1) procured contracts in accordance with U.S. Department of Housing and Urban Development (HUD)…
September 12, 2012
Report
#2012-NY-1012
State of Louisiana Department of Children and Family Services, Recovery Act Homelessness Prevention and Rapid Re-Housing Program
Homelessness Prevention and Rapid Re-Housing Program. Our objectives were to determine whether the State ensured that (1) Recovery Act disbursements to local governments were eligible and supported and (2) Program participants were eligible to receive assistance in accordance with Program requirements.
The State generally ensured that its Recovery Act disbursements to local governments were eligible. However, some of the disbursements were not…
September 07, 2012
Report
#2012-FW-1014
Little Haiti in Miami, FL, Did Not Fully Comply With Federal Rules When Administering NSP2
We audited Little Haiti Housing Association as a result of a complaint received regarding its administration of the multifamily activity funded under the Neighborhood Stabilization Program 2 (NSP2). Our objective was to determine whether Little Haiti used NSP2 funds in compliance with Federal regulations. Specifically, we focused on determining whether (1) Little Haiti complied with Federal regulations when selecting and using the developer,…
September 06, 2012
Report
#2012-AT-1015
HUD Did Not Effectively Oversee and Manage the Receivership of the East St. Louis Housing Authority
The U.S. Department of Housing and Urban Development’s (HUD), Office of Inspector General reviewed HUD’s receivership of the East St. Louis Housing Authority based on the length of receivership and issues identified during recent external audits. Our objective was to determine whether HUD effectively oversaw and managed the recovery and turnaround of the Authority during the three-year period ending in September 2011.
HUD did not effectively…
September 05, 2012
Report
#2012-KC-0003
Gruening Park Apartments, Juneau, AK, Did Not Always Comply With HUD Rules and Regulations
he U.S. Department of Housing and Urban Development (HUD), Office of Inspector General audited Gruening Park Apartments, a 96-unit apartment complex in Juneau, AK, owned and operated by Alaska Housing Development Corporation, Inc., to determine whether the owner administered the project and its programs in compliance with the regulatory agreement and other HUD requirements. We selected this project primarily due to its having a significantly…
September 05, 2012
Report
#2012-SE-1006
The Aurora Housing Authority, Aurora, IL, Did Not Administer Its Grant in
The U.S. Department of Housing and Urban Development, Office of Inspector General audited the Aurora Housing Authority’s Recovery Act formula grant. The audit was part of the activities in our fiscal year 2012 annual audit plan. We selected the Authority based upon our analysis of risk factors related to the housing agencies in Region V’s (see footnote) jurisdiction. Our objective was to determine whether the Authority administered its grant…
September 05, 2012
Report
#2012-CH-1010
Final Civil Action: Bartlesville Health Care Center, Inc., Owners and Lender Settled Alleged Violations of the False Claims Act
Based on a request by the U.S. Department of Housing and Urban Development’s (HUD) multifamily housing Kansas City hub office, we started an audit of three related nursing facilities on August 2008:
• Bartlesville Health Care Center, Inc., doing business as Silver Lake Care Center;
• Mannford Health Care Center, Inc., doing business as Cimarron Pointe Care Center; and
• Owasso Nursing Center, Inc., doing business as…
August 24, 2012
Memorandum
#2012-FW-1805
The Texas Department of Housing and Community Affairs, Austin, TX, Did Not Always Comply with Neighborhood Stabilization Program Requirements
We audited the U. S. Department of Housing and Urban Development (HUD) Neighborhood Stabilization Program (NSP1) administered by the Texas Department of Housing and Community Affairs. We selected the Department based upon the large amount of NSP1 funding that it received, more than $101 million. Our objective was to determine whether the Department complied with NSP1 requirements for obligations, expenditures, program income, monitoring, and…
August 22, 2012
Report
#2012-FW-1013
HUD's Office of Single Family Housing's Oversight of Lenders' Underwriting of FHA-Insured Loans Was Generally Adequate
The U.S. Department of Housing and Urban Development, Office of Inspector General audited the U.S. Department of Housing and Urban Development’s (HUD) oversight of Federal Housing Administration (FHA)-insured loans. We initiated the audit as part of the activities in our 2011 annual audit plan and strategic plan. Our audit objective was to determine whether HUD had adequate oversight of lenders’ compliance with FHA’s underwriting requirements…
August 17, 2012
Report
#2012-CH-0001
The City of Elizabeth, NJ, Did Not Always Administer Its Community
We audited the City of Elizabeth, NJ’s Community Development Block Grant (CDBG) program in support of the U.S. Department of Housing and Urban Development (HUD), Office of Inspector General’s (OIG) goal to contribute to improving HUD’s execution of and accountability for its fiscal responsibilities. We selected the City after completing a risk analysis of CDBG grantees administered by the HUD Newark, NJ, field office. This assessment considered…
August 15, 2012
Report
#2012-NY-1011
The State of Washington Generally Complied With Lead Hazard Control Grant and Recovery Act Requirements but Charged Excessive Administrative Costs
The U.S. Department of Housing and Urban Development (HUD), Office of Inspector General audited the Washington State Department of Commerce to determine whether it complied with Lead Hazard Control grant project eligibility, matching contribution, administrative cost, and American Recovery and Reinvestment Act reporting requirements. This audit is part of the national mandate to monitor grant activities funded by the Recovery Act. We selected…
August 09, 2012
Report
#2012-SE-1005
HUD’s Conference Spending
In response to a request from Senator Jeanne Shaheen, we compiled information from audits and investigative activities we performed that included findings or allegations regarding the U.S. Department of Housing and Urban Development’s (HUD) conference spending and related travel.
Our records showed that we performed 34 such reviews between October 1995 and January 2012. Our audit reports disclosed immaterial instances of unsupported…
August 07, 2012
Memorandum
#2012-IE-0801
The City of San Antonio, TX, Did Not Administer Its Neighborhood Stabilization Program Grant in Accordance With Requirements
In accordance with our goal to review Housing and Economic Recovery Act of 2008 grantees and because of weaknesses identified by the U.S. Department of Housing and Urban Development (HUD), the Office of the Inspector General (OIG) initiated a review of the City of San Antonio’s activities funded by its Neighborhood Stabilization Program 1 grant. The objective was to determine whether the City administered its grant in accordance with program…
August 06, 2012
Memorandum
#2012-FW-1804